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DISCOVERY LABS INITIATES TWO PHASE II CLINICAL TRIALS

January 10, 2005

Discovery Laboratories has initiated two Phase II clinical trials utilizing its Surfactant Replacement Therapy (SRT) to address respiratory disorders that are prevalent in premature infants in the neonatal intensive care unit.

The company has designed a Phase II clinical trial to assess the safety and efficacy of Surfaxin for the prevention of bronchopulmonary dysplasia, a serious, chronic lung disease of newborn infants. The company has also begun a Phase II pilot study to evaluate the safety, tolerability and device optimization for the delivery of aerosolized SRT administered through nasal continuous positive airway pressure as a noninvasive means to potentially treat neonatal respiratory failures.